California Water Service Group (CWT) Q4 2025 earnings summary

Executive summary

• Announced acquisitions of Nexus Water's Nevada and Oregon operations and full ownership of BVRT Holdings in Texas, expanding presence to eight states and diversifying regulatory exposure.

• 2025 marked the 100th year of operations, with record $517 million infrastructure investment and continued focus on rate case progress and regulatory engagement.

• Q4 and full-year 2025 results were negatively impacted by severe wet weather, reducing customer consumption and earnings.

• Increased annual dividend by 10.71% in 2025 and announced a further 8% increase for 2026, marking the 59th consecutive annual increase.

• Completed rate cases in Hawaii and Washington, supporting infrastructure upgrades and revenue growth.

Financial highlights

• Q4 2025 revenue was $220 million, down from $222.2 million in Q4 2024; net income was $11.5 million ($0.19 per share) versus $19.7 million ($0.33 per share) year-over-year.

• Full-year 2025 operating revenue was $1 billion, up 5.4% from non-GAAP 2024 revenue of $949.3 million; GAAP revenue declined 3.5% year-over-year.

• Net income for 2025 was $128.2 million, up 1% from non-GAAP 2024 net income of $126.8 million; GAAP net income decreased 32.8% year-over-year.

• Diluted EPS for 2025 was $2.15, essentially flat compared to non-GAAP 2024 EPS of $2.16; GAAP EPS declined from $3.25 in 2024.

• Dividend per share was $1.24 in 2025, up from $1.12 in 2024, including a special dividend.

Outlook and guidance

• Expecting timely completion and integration of Nexus and BVRT acquisitions.

• Anticipate a decision soon on the 2024 California General Rate Case, with planning underway for the 2027 rate case.

• Continued focus on infrastructure investment, regulatory engagement, and disciplined capital allocation.

• PFAS treatment program to continue, with $50–$70 million in spending expected in 2026 and majority of treatment in place by end of 2027; $235.3 million in additional PFAS-related capital expenditures expected over multiple years.

• Rate base projected to exceed $3.3 billion by 2027, with an 11.7% CAGR from 2018–2027.